Aimtron Electronics IPO Subscription Status

Aimtron Electronics IPO Subscription Status on Day-3

As of 5.30 pm on 03rd June 2024, out of the 35.872 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Aimtron Electronics saw bids for 3,560.60 lakh shares. This implies an overall subscription of 99.26X at a macro level at the close of Day-3 of the IPO. The granular break-up of subscriptions as of the close of Day-3 of the Aimtron Electronics IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and then by the QIB investors in that order. The QIB quota and the NII / HNI typically gather most of the momentum on the last day, and that was the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: NSE

The IPO was open up to June 03, 2024, and has closed for subscription as of the close of Monday. As of today, the status is fully updated as of the end of Day-3 of the IPO and the closure of the issue. The QIB and the HNI / NII categories saw the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

What we read from the final subscription numbers?

Here are quick takeaways from the final subscription numbers.

•    In the QIB component of the subscription, the FPIs accounted for 29.7% of the total bids received as of the close of the IPO.

•    In the HNI / NII portion, individual HNI investors accounted for 82.5% of the total subscriptions while corporates accounted for 11.4% of the subscription bids.

•    In the retail portion, 53.11% of the bids came in as cut-off price bids, while the balance 46.89% of the bids came in as price bids.
The basis of allotment of the IPO will be finalized on June 04, 2024 and demat credits will happen on June 05, 2024.
 

Aimtron Electronics - IPO subscription Status on Day-2

As of 5.15 pm on 31st May 2024, out of the 35.872 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Aimtron Electronics saw bids for 196.952 lakh shares. This implies an overall subscription of 5.49X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of Day-2 of the IPO of Aimtron Electronics was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: NSE

The IPO is open up to June 03, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-2 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

Aimtron Electronics - IPO subscription Status on Day-1

As of 5.10 pm on 30th May 2024, out of the 35.872 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Aimtron Electronics saw bids for 81.536 lakh shares. This implies an overall subscription of 2.27X at a macro level at the close of Day-1 of the IPO. The granular break-up of subscriptions as of the close of Day-1 of the IPO of Aimtron Electronics was as under:

The subscriptions were led by the retail investors followed by the QIB investors and then by the HNI / NII investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: NSE

The IPO is open up to June 03, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-1 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

Aimtron Electronics – Share Allocation Across Categories

The table below captures the break-up of the overall share allocation to QIBs, retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota and the QIB quota is reduced accordingly. The market maker allocation is the inventory that will be used by the market maker to provide liquidity in the counter post listing, to keep the bid-ask spreads low and reduce the risks of trading in the stock. The company has appointed Hem Finlease Private Ltd as the market maker and assigned a market making inventory of 2,81,600 shares to them. The market maker will use this inventory to offer buy and sell quotes to keep the counter liquid and reduce the basis risk on the stock post listing.

Data Source: Company RHP

The issue size, net of the market maker quota, has been divided between the QIB investors, retail investors and the HNI / NII investors. On May 29, 2024, the company made an anchor allocation of 15,36,000 shares to anchor investors at a price of ₹161 per share. This included the par value of ₹10 per share and premium of ₹151 per share. The total size of the anchor allocation was ₹24.73 crore.

The anchor allocation was done across 11 anchor investors at the upper end of the price band at ₹161 per share. Out of the 11 anchor investors, 5 major anchor investors got 75.63% of the total anchor allocation. These 5 major anchor investors included AG Dynamic Funds Ltd (19.95%), Bengal Finance & Investment Private Ltd (19.95%), Meru Investment Fund PCC – CELL-1 (19.95%), Subhkam Ventures Private Ltd (7.92%), and Finavenue Capital Trust – Finavenue Growth Fund (7.86%). In addition, another 6 anchor investors got an allocation of 4.06% each.
Out of the total anchor allocation of ₹24.73 crore, a total of 50% of the allocation will have a 1-month lock in up to July 04, 2024 and the balance 50% will have a 3-month lock-in up to September 02, 2024. The anchor portion was carved out of the QIB portion, as a result of which the QIB quota available in the IPO was reduced from 47.38% to 18.96%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About the IPO of Aimtron Electronics

The stock of Aimtron Electronics has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹153 to ₹161 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Aimtron Electronics has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Aimtron Electronics will issue a total of 54,04,800 shares (54.05 lakh shares approximately), which at the upper band IPO price of ₹161 per share aggregates to fresh fund raising of ₹87.02 crore. Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 54,04,800 shares (54.05 lakh shares approximately) which at the upper band IPO price of ₹161 per share will aggregate to overall IPO size of ₹87.02 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,81,600 shares. Hem Finlease Private Ltd will be the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The company has been promoted by Mukesh Jeram Vasani, and Nirmal Vasani. The promoter holding in the company currently stands at 100%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 72.91%. The fresh issue funds will be used by the company for capex towards additional plant & machinery, repayment of high cost borrowings and for working capital purposes. Some part of the funds will also be used for general corporate expenses. Hem Securities Ltd will be the lead manager to the issue, and Link Intime India Private Ltd will be the registrar to the issue. The market maker for the issue is Hem Finlease Private Ltd. The IPO of Aimtron Electronics will be listed on the SME IPO segment of the NSE.

Next Steps in the Aimtron Electronics IPO Process

The issue opened for subscription on 30th May 2024 and closes for subscription on 03rd June 2024 (both days inclusive). The basis of allotment will be finalized on 04th June 2024 and the refunds will be initiated on 05th June 2024. In addition, the demat credits are expected to also happen on 05th June 2024 and the stock will list on 06th June 2024 on the NSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 05th June 2024 under ISIN (INE0RUV01018).